In the news: Specialised IP courts established, US voices antitrust probe concerns and China faces manufacturing slowdown

Specialised IP courts introduced

The National People's Congress has established specialised IP courts in Beijing, Shanghai and Guangzhou. The Supreme People's Court (SPC) will decide on the types and number of cases, and the Beijing IP court will hear first instance appeals of validity and invalidity decisions of State Council IP agencies. The courts will have cross-border jurisdiction of the types of cases determined by the SPC and will be supervised by the SPC, the local high court and the procuratorate.

Source:
China IPR

While this is good news, the legislation requires clarity on certain details. It states that the courts will hear technically complex first instance civil matters and administrative appeals, including patents, technical trade secrets, plant varieties and semiconductor layout designs. However, there is no legal definition of a technical trade secret, and copyright cases can be more technically complex than the examples given above. It is also unclear whether anti-monopoly cases qualify as technically complex. The fact that the presidents of the local IP courts will be appointed by the local people's congress leaves open the risk of protectionism. It appears that these IP courts will be the first instance courts for foreigners' trademark and copyright cases, but whether they have cross-border jurisdiction – which would be effective – remains unclear. The legislation also commits Beijing to hearing administrative and civil IP cases in one specialised court, which is useful for foreigners who bring many administrative cases.

More from CLP:
Supreme People's Court, Decision on Amending the «Supreme People's Court, Several Provisions on Issues Concerning the Application of the Law in the Trial of Patent Disputes» (Draft for Public Comments)
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US-China Business Council raises concern over antitrust probes

A lobby group claims that companies facing antitrust investigations in China are being subjected to pressure tactics from regulators, who have ramped up their enforcement of the Anti-monopoly Law in recent months. The US-China Business Council said that companies that were being scrutinised had been pressured to admit guilt, appear without legal counsel and make public statements without being told why they were being probed. The government rejected these claims and said the investigations conducted by the NDRC, MOFCOM and the SAIC were all according to law.

Source:
Reuters

The complaint follows others made by the American Chamber of Commerce in China, the European Union Chamber of Commerce in China and the Washington-based US Chamber of Commerce – all of which have spoken out on what they say is the nation's unfair use of anti-monopoly policy. A survey conducted by the US-China Business Council found 86% were concerned about China's enforcement efforts. Microsoft and Qualcomm have been scrutinised this year, as well as Daimler, Audi, BMW and Fiat. Last month, the NDRC handed a record fine to Japanese car part makers, the largest individual fine of Rmb290.4 million went to Sumitomo Electric Industries, which broke the record set last year in the fines of six dairy companies including Mead Johnson and Danone. Despite the complaints, there isn't much the companies are able to do. Enforcement will not stop anytime soon.

More from CLP:
Interview: Adopting the right mindset – Sherman Chu of Cisco
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China growth slows as manufacturing pulls back

China's manufacturing growth has dropped more than estimated, adding to weaker-than-expected credit, production and investment data. The fall in manufacturing comes as the real estate market slumps, risking the government's growth target of 7.5% this year. Analysts have said more stimulus measures will be announced in the next few weeks, which may include a greater re-lending quota from the central bank.

Sources:
Bloomberg
The Wall Street Journal

The output drop is evidence that the pressure on Chinese growth has spread from real estate to manufacturing. Factory owners were negatively affected by a credit squeeze in July, when lenders were becoming more cautious due to fears of a slowing economy and more non-performing loans. The People's Bank of China may need to loosen policy to sustain growth if lending continues to slow. It recently granted a Rmb20 billion re-lending quota to several regional bank branches to bolster agriculture and plans to also cut interest rates on re-lending to certain rural financial institutions. The anticorruption campaign has also been attributed as a hit to the economy. The priority of upcoming reforms will be to reach the growth target.

More from CLP:
State Council, Guiding Opinions on Accelerating the Development of Production-type Service Industries to Promote Restructuring and Enhancement of the Industrial Structure